Insurers have reimbursed customers about $290,000 after a Financial Ombudsman Service (FOS) review found inadequate payments were made for vehicles written off in accidents.

One enquiry led to about $280,000 being paid after more than 380 customers were affected by incorrect replacement cost calculations on claims dating back several years. An investigation of another insurer led to reimbursements totalling almost $11,000.

The refunds apply to market-value policies that failed to include stamp duty and transfer fees when paying vehicle replacement costs.

FOS says “replacement cost” implies the price of buying a vehicle of the same make, model, age and condition, including the extra fees.

Lead Ombudsman John Price says the issue has arisen previously, with the latest problems highlighted after complaints last financial year.

“I think it is historically something that has occurred that is [based on] an incorrect calculation and it is now being remedied,” he told insuranceNEWS.com.au.

Mr Price says a range of different wordings affect claims after write-offs and some policies specifically exclude stamp duty and replacement fees.

“I would hope the insurers are aware they need to carefully look at the wording in their policies and make sure they are assessing value appropriately.”

Some further investigations are currently being resolved, he says.